Secondaries giant Coller Capital has warned that the market for second-hand private equity interests is becoming increasingly competitive as the firm published its latest set of annual accounts.

Jeremy Coller

According to the latest yearly report filed at Companies House for Coller Capital Limited – the principal investment adviser to the firm’s funds – Coller recorded a pre-tax profit of £2.1 million in the year to March 2014, down from £2.7 million in the previous 12 months. Coller’s turnover fell to £45.1 million in the year to March 2014 from £57.6 million in the previous period, according to the accounts.

Founder Jeremy Coller said in a statement that the firm believes $28 billion of secondaries trades will be made in 2014, while it is expecting increasing competition as its rivals raise larger funds. In the annual report, Coller said rising stock markets and “significant capital raising” by rivals had increased prices in the past year.

He said: “However, the supply of willing sellers is strong – 2013 was a record year for transactions ($25.5 billion) and this growth will probably accelerate in 2014.”

The firm warned there were risks to the global recovery, which could affect the firm’s operations. It said: “Structural reforms in individual nations and further economic integration at the level of the eurozone are both necessary, but it is not clear the political will to undertake them is really there.”

Wages and salaries fell to £18 million in the year to March 2014, from £23.7 million in the previous 12 months. But a £2 million dividend was paid out to directors in the most recent period, following a dividend-free year in 2012-13.